Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
This Week's Exclusive News
As U.S. Debt Surpasses GDP, These 2 ETFs Are Emerging Winners in the “Sell America” TradeWritten by Jessica Mitacek. Publication Date: 5/18/2026. 
Key Points
- U.S. federal debt has exceeded 100% of GDP for the first sustained period since 1946, with total national debt topping $39 trillion.
- Two international ETFs, VXUS and IXUS, offer investors a hedge against U.S. sovereign risk by covering 99% of global market capitalization outside the United States.
- Both funds have outperformed the S&P 500 over the past year with gains exceeding 29%, while paying dividend yields above 2.6%.
- Special Report: Elon Musk already made me a “wealthy man”
America has a massive debt problem, and it isn’t record-high auto loans and credit card delinquencies that are fueling the crisis. As of March 31, U.S. federal debt held by the public exceeded 100% of the country’s gross domestic product (GDP) for the first sustained period since 1946. According to the U.S. Debt Clock, the national debt has now topped $39 trillion, and the interest on that debt exceeds $1 trillion. Meanwhile, Federal Reserve data indicates that in Q1 2026, U.S. GDP was nearly $32 trillion.
A under-the-radar AI stock trading for just $3 could be one of the most overlooked opportunities in the market right now.
While Nvidia dominates headlines, this small-cap play is positioned for significant upside at a fraction of the price.
Discover our No. 1 AI pick before the broader market catches on. Reveal the $3 AI Pick
As sovereign risk increases, conservative-minded investors can turn to two exchange-traded funds (ETFs) that may help hedge against the possibility of a federal debt default. How U.S. Federal Debt Got So BadSave for a very brief period during the pandemic, when GDP plummeted, the last time the United States found itself in this situation was in the wake of World War II. But unlike post-war America, the drivers and implications today are far different. According to the Peter G. Peterson Foundation, a nonpartisan, nonprofit organization that aims to build support for solutions to put America on a sustainable fiscal path, today’s federal debt crisis is being driven by a combination of factors. A series of tax cuts, and subsequently lower tax revenue, increased government spending, interest payments, and the costs associated with America’s aging population have fueled a rise in both Social Security and Medicare outlays. The Congressional Budget Office (CBO) anticipates that federal spending will rise from 23.3% of GDP in 2026 to 27.9% in 2056. The CBO has also found that while tax revenue will increase during that forecast period, it will do so more slowly, climbing from 17.5% of GDP in 2026 to 18.8% in 2056. While the United States has yet to default on its debt, government shutdowns spurred by deficit spending debates have contributed to the country’s credit rating being downgraded three times. Most recently, Moody’s lowered the U.S. rating from Aaa to Aa1 in 2025, citing rising debt and the interest costs of servicing that debt. Previously, Fitch Ratings and Standard & Poor’s downgraded the United States’ credit rating in 2023 and 2011, respectively. For investors who are growing increasingly wary of sovereign risk in the United States—which could adversely affect U.S.-based companies—ETFs that specifically target global exposure can provide a layer of safety. Vanguard’s Global Diversification PlayThe Vanguard Total International Stock ETF (NASDAQ: VXUS) is designed to track the FTSE Global All Cap ex US index, a market-cap-weighted index of global stocks covering 99% of the world's market capitalization outside the United States. Launched in January 2011, the ETF has performed particularly well since COVID-19 disrupted global markets. Since the fund’s March 2020 pandemic low, it has gained 120%. But since the “Sell America” trade emerged in April 2025 and accelerated through the fall as the market rotated out of high-flying tech stocks and mega-cap U.S. equities, the fund has performed especially well. Over the past year, the Vanguard Total International Stock ETF has gained around 25%, outperforming both the S&P 500 and the Dow Jones Industrial Average. That has been driven by lopsided institutional ownership, with 1,342 buyers injecting more than $10 billion into the fund over the past 12 months compared with 671 sellers pulling out just over $4 billion. Particularly appealing to income investors, VXUS pays an annual dividend of $2.28 per share. Current short interest is negligible at 0.48% of the float, or just 8.4 million shares of the 1.73 billion shares outstanding. While the absence of U.S.-listed equities may suggest limited growth prospects, VXUS's top-10 holdings include growth stocks like Taiwan Semiconductor Manufacturing Company (NYSE: TSM) and new trillion-dollar market cap member Samsung (OTCMKTS: SSNLF), in addition to global Big Pharma mainstays Novartis (NYSE: NVS) and AstraZeneca (NYSE: AZN). BlackRock’s International Equity HedgeLike VXUS, the iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) is designed to provide exposure to global stocks by covering 99% of the global market cap outside of the United States. Since its debut in October 2012, it has tracked the market-cap-weighted MSCI AC World ex USA IMI Index. Since the fund’s pandemic low, it has gained nearly 129%. The fund has outperformed the S&P 500 over the past year, compiling a gain of around 25%. IXUS pays an annual dividend of $2.74, slightly more than its VXUS counterpart. But the spread between institutional buying and selling is even more pronounced for IXUS. Over the past year, the fund has seen inflows of more than $1 billion versus outflows of less than $228 million. Current short interest of 1.32% of the float is higher than VXUS’s, but still indicates a fund that is not on bears’ radar. The ETF’s top-10 holdings also include Taiwan Semiconductor, Samsung, Novartis, and AstraZeneca, while providing additional Asian exposure via Alibaba (NYSE: BABA) and Tencent Holdings (NYSE: TME). |
